This Is It: The Transportation Consolidation Phase Has Begun

A Careem Networks FZ logo sits on the exterior of a driver support center at the ride-hailing company's headquarters in Dubai, United Arab Emirates, on Thursday, Oct. 4, 2018. Careem last month acquired Indian bus shuttle service app Commut as the Dubai-based ride-hailing firm expands into mass transport. Photographer: Christopher Pike/Bloomberg

The upcoming Uber and Lyft IPOs will give both companies a substantial cash injection to use for investments and acquisitions. The eagerness of investors, who are not usually collectively wrong, indicates that we are on the cusp of a huge change that will enable the crucial reduction in operating costs that comes with the development of autonomous driving in an industry where 70% of the cost is estimated to be the driver.

This is it: the consolidation phase begins, with the major players ready to capitalize, gird their loins and establish a presence in as many countries as possible while sharpening their swords for the next phase. Uber’s acquisition of Careem will be just one of many, involving all those companies that have managed to stake their claim in a country but that lack the size to undertake investments in their own autonomous driving technology. In a very short time, urban transportation will change radically.